Severance Pay Ceiling Amount (July 2025)

Severance pay is one of the most important employee rights under Turkish labor law. Article 14 of Labor Law No. 1475 severance pay is a legal claim that the employee may demand from the employer upon termination of the employment contract under certain conditions. However, the upper limit of the severance pay to be paid to the employees is determined by law and this limit is called the severance pay ceiling.

For July 2025, the current severance pay ceiling amount has been announced by the Ministry of Labor and Social Security.

1. Legal Basis of Severance Pay Ceiling

• Article 14/13 of Labor Law No. 1475 (amended by Law No. 2762): “The annual amount of severance pay shall not exceed the maximum retirement bonus payable to the highest civil servant for one year of service.”
• Law No. 2320 (12.09.1980 – 31.12.1982 period): During this period, the annual amount of severance pay could not exceed 7.5 times the 30-day minimum wage.
• Law No. 5434 on the Turkish Retirement Fund – Provisional Article 4 of the Social Security and General Health Insurance Law No. 5510: The indicators and rates used in the calculation of retirement bonus are taken as basis in determining the severance pay ceiling.

🔗 Of ficial Source: Ministry of Labor and Social Security – Severance Pay Ceiling

2. Severance Pay Ceiling as of July 2025

As of 01.07.2025, the severance pay ceiling is calculated with the following formulas:

• Monthly Indicator: 1.500 x 1,170211 = 1.755,32 TL
• Additional Indicator: 8.000 x 1,170211 = 9.361,69 TL
• Total Indicator of Seniority Pension: 500 x 1,170211 = 585,11 TL
• Base Monthly Indicator: 1.000 x 18,316014 = 18.316,01 TL
• (Monthly Indicator + Additional Indicator) x Coefficient x 215%: 23.901,56 TL

📌 Total: 53,919.68 TL (maximum severance pay ceiling for one year of service in 2025)

3. Comparison with Prior Period (January 2025 – July 2025)

• 01.01.2025 – 30.06.2025 period ceiling: 46.655,43 TL
• 01.07.2025 – 31.12.2025 period ceiling: 53.919,68 TL

➡️ As can be seen, the severance pay ceiling was increased by approximately 15.6%.

4. Importance of Severance Pay Ceiling

• For employers, it sets the upper limit for severance payments to be made to departing employees.
• For workers, it shows the maximum annual amount of severance pay they will receive for long-term employment.
• Although the principle of interpretation in favor of the employee applies in labor law, the ceiling amount is the legal limit and cannot be exceeded.

5th Case Example: Severance Pay for a 10-Year Employee (2025)

Scenario: A worker quits after 10 years of uninterrupted employment at the same workplace under legal conditions.

• Calculation after 01.07.2025 based on the current ceiling: 10 years x 53.919,68 TL = 539.196,80 TL

This is the maximum severance paythat can be paid even if the gross wage of the worker is higher.

6. Question and Answer

7. Conclusion and Legal Support

The severance pay ceiling is of great importance for both workers and employers. As of July 2025 , the maximum amount of severance pay that can be paid for one year of service is determined as 53,919.68 TL.

For more information and legal advice, please contact the lawyers of MFY Legal | Law Office.

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